The Effect of Good Corporate Principle on the Performance of PT Tonasa Lines in 2020

1Anni Suryani,
2 Ulfa Rabiyah,
3 Siti Hajar Damayanti,
4 Abdul Karim
1,23,4
Accounting, STIE AMKOP Makassar, South Sulawesi, Indonesia

The Effect of Good Corporate Principle on the

Performance of the PT Tonasa Lines in 2020
Abstract:-
In the era of the Industrial Revolution 4.0, the application of GCG in the business world
in Indonesia is a demand of the times so that existing companies do not fall behind by the
increasingly fierce global competition. Generally, GCG principles aim to provide
progress towards company performance. The application of the principles of Good
Corporate Governance is something that really needs to be considered. Good Corporate
Governance (GCG) came into effect in Indonesia in 1998. Based on the proposed
improvement of the listing regulations on the Jakarta stock exchange (now the Indonesia
stock exchange). Regulates the regulations regarding the establishment of an audit
committee and the appointment of independent commissioners in 1998. Implementation
of Good Corporate Governance (GCG) correctly and consistently is expected to create
strong fundamentals. Increasing corporate value in the long term through high-
performance enhancement and the creation of a positive corporate image.

Keywords:-
Transparency, Accountability, Responsibility, Independence, Fairness.
I. INTRODUCTION
The national cement industry is one of the most potential and strategic industries
(Adiyatna, H., & Marimin. 2001). This aspect is due to Indonesia's vast territory and also
cement is needed in the development of infrastructure for life such as roads, ports,
housing (Azees, 2015). Indonesia's huge cement market makes the cement industry quite
promising in terms of profit, not only for local people but also for foreigners (Karim,
2019). Thus, the increasingly complex and competitive level of competition requires that
local cement management be able to create a competitive advantage (Burak, et al. 2017).
In 2017, one of Semen Tonasa's partners, namely PT Semen Padang implements a bad
GCG system as a result of which there is a very serious decline in profits and at least
there will be leaks on the revenue side (Dian. 2016), waste from the shopping side,
untrusted spending, market confidence in goods and services decreases (Pacala, A. 2012).
The scandal in the process of purchasing coal from PT Bhumi Rantau Energi and PT
Tapin Suthra Berjaya is suspected of involving the company's top executives and among
them the former chief commissioner of PT Semen Padang for the 2015 period, currently
serving as one of the independent commissioners at PT Semen Indonesia illustrates the
non-implementation of GCG principles in this state-owned company (Mukhtaruddin, et
al. 2019). PT Semen Tonasa implements GCG, directly or indirectly, to provide added
value for increasing corporate value. The management of a company based on the
principles of GCG is basically an effort to make GCG a guideline for company
management in carrying out its business activities (Rusydi et al. 2020). The application of
GCG principles is necessary so that companies can survive and be ready to face
increasingly strong and fierce competition (Rabiyah, U et al. 2021). GCG is expected to
be a means to achieve the company's vision and mission in a better and more
comprehensive manner (Rabiyah, U. 2015). To further encourage cost efficiency and
productivity improvements in the use of alternative fuels and raw materials, efforts to
improve distribution and cost control and innovative breakthroughs, the implementation
of GCG principles is both an option and an unavoidable necessity (Karim, A. 2020).
GCG is expected to be a value river in inhibiting the practices of Corruption, Collusion,
and Nepotism, making use of supervision, increasing budgetary discipline, and
encouraging the efficiency of company management (Syukur et al. 2020).
II. METHODOLOGY
This research uses the descriptive quantitative method which is a type of research that is
more specific, structured, systematic, and well-planned from the start so as to get the
desired conclusion. This study aims to provide a description of the social problems to be
studied. This research usually describes a problem based on indicators that are used as the
basis or reference for a problem to be studied. This study also emphasizes the use of
numbers that make it clearer and more detailed, such as the use of graphs, tables, and
diagrams, which makes it easier to find out the conditions regarding the effect of the
implementation of the principles of good corporate governance. This research instrument
uses indicators of each variable which are described in the form of statements or
questions presented in a questionnaire. Measurement of the variables studied can be
explained in the form of a questionnaire with each given score. Quantitative analysis is
used using a statistical formula tailored to the researcher to assess the results of filling out
the questionnaire. The results of filling out the questionnaire conducted by these
respondents were tested through statistical tests. Statistical testing in this study was
assisted by the
Volume 6, Issue 2, February
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2021 International Journal of Innovative Science and Research Technology ISSN No:-
2456-2165

IJISRT21FEB010 www.ijisrt.com 23
The responsibility variable can be stated that the minimum value is 15, the maximum is
25 with a range of 10, the average (mean) answer of these variables is 22.70, which is
greater than the standard deviation of 2.465, so it can be concluded that the distribution of
data regarding respondents' perceptions of the responsibility variable in PT Tonasa Lines
is good. The independence variable can be stated that the minimum value is 11,
maximum 25, with a range of 14, the average (mean) answer to this variable is 22.15,
which is greater than the standard deviation, which is 2,939, so it can be concluded that
the distribution of data regarding the respondent's perception of the Independence
variable in PT Tonasa Lines is good. The fairness variable can be stated that the
minimum value is 12, maximum 25 with a range of 13, the average (mean) answer of
these variables is 22.27, which is greater than the standard deviation of 2.869, so it can be
concluded that the distribution of data regarding the respondent's perception of the
Fairness variable in PT Tonasa Lines is good. The company performance variable can be
stated that the minimum value is 14, maximum 21, with a range of 35, the average
(mean) answer of these variables is 31.90, which is greater than the standard deviation of
3.261, so it can be concluded that the distribution of data regarding respondents'
perceptions of The company's performance variable at PT Tonasa Lines is good.
B. Discussion
Based on the results of the research that is testing the hypothesis using the F test
(simultaneously or together) it can be stated that the five independent variables in this
study consisting of the principles of transparency, accountability, responsibility,
independence, and fairness have an effect simultaneously or together on the dependent
variable, namely the performance of PT Tonasa Lines. The effect of the transparent
principle on the performance of PT Tonasa Lines, the first hypothesis states that the
transparent principle has a positive and significant effect on improving company
performance is not proven. This can be indicated by the significance value of the
transparent principle of 0.703 which is far above the significance of 0.05 and the
regression coefficient value of 0.037. It can be concluded that the principle of
transparency has a positive but insignificant effect on company performance. The effect
of the accountability principle on the performance of PT Tonasa Lines, the second
hypothesis states that the accountability principle has a positive and significant effect on
company performance is not proven. This can be indicated by the significance value of
the accountability principle of 0.132 which is far above the significance value of 0.05
with a regression coefficient of 0.37. Therefore, it can be concluded that the principle of
accountability has a positive but insignificant effect on company performance. The effect
of the principle of responsibility on the performance of PT Tonasa Lines, the third
hypothesis states that the principle of responsibility has a positive and significant effect
on company performance is not proven. This can be indicated by the significance value
of the principle of responsibility of 0.521 which is far above the significance value of
0.05 with a regression coefficient of -0.055. Therefore, it can be concluded that the
principle of responsibility does not have a positive and significant effect on company
performance. The influence of the principle of independence on the performance of PT
Tonasa Lines, the fourth hypothesis states that the principle of independence has a
positive and significant effect on company performance. This can be indicated by the
significance value of the independence principle of 0.004 below the significance value of
0.05 with a regression coefficient of 0.409. Therefore, it can be concluded that the
principle of independence has a positive and significant effect on company performance.
The effect of the fairness principle on the performance of PT Tonasa Lines, the fifth
hypothesis states that the fairness principle has a positive and significant effect on
company performance. This can be indicated by the significance value of the fairness
principle of 0.003 below the significance value of 0.05 with a regression coefficient of
0.425. Thus, it can be concluded that the principle of fairness has a positive and
significant effect on company performance. Based on the results of research that have
been done and the results in improving company performance, PT Tonasa Lines has not
properly implemented the principles of good corporate governance or cannot be said to
be a company that has good governance. This happens because there are still insignificant
principles such as transparency, accountability, and responsibility. The results obtained
from this study are real based on the perceptions of respondents or employees who work
at PT Tonasa Lines.
IV.CONCLUSSION
In improving performance and compliance with the implementation of GCG principles,
the company compiles GCG guidelines that can be applied consistently so that all the
values held by parties with an interest in the company can produce a pattern of beneficial
economic relationships, values, vision, and mission as well as GCG best practices. Based
on the results of this study, it is concluded that the principles of good corporate
governance are still not implemented properly or have no effect in improving company
performance. In this case, PT Tonasa Lines cannot be said to be a company with good
governance because there are still Principles that are not implemented significantly.